Mississippi ranks #4 overall out of the 51 U.S. jurisdictions for its friendliness towards faith-based nonprofit organizations, making it one of the best states in which to operate a faith-based nonprofit. Mississippi has several policies that facilitate the contributions of faith-based nonprofits, including broad protections for religious organizations related to employment laws and a strong state RFRA statute. Mississippi, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as an audit requirement for nonprofits that are registered to solicit funds in Mississippi.
Religious Freedom:
State Constitutional Protection of Free Exercise:
0
/5
The Mississippi Constitution follows in lockstep with the federal constitution’s protections, meeting but not exceeding the required minimum protections of the First Amendment.
State Religious Freedom Restoration Act:
3
/5
Mississippi has enacted a RFRA that protects the religious free exercise of all individuals and entities by requiring government burdens on religious exercise to satisfy strict scrutiny. Since these protections originate in a statute rather than the state constitution, Mississippi does not receive the highest score for this factor.
Religious Freedom for Nonprofits with Public Programming:
5
/5
Mississippi has no nondiscrimination laws related to public programming and facilities.
Religious Freedom for Faith-Based Employers:
5
/5
Mississippi’s nondiscrimination laws related to employment are narrow and generally would not jeopardize the autonomy of religious organizations.
Protections for Religious Exercise in State of Emergency:
-3
/5
Mississippi law has no explicit constitutional or statutory protections for religious exercise during a time of emergency.
Blaine Amendment:
-3
/5
The Mississippi Constitution contains a Blaine Amendment that could prevent the participation of faith-based schools in generally available public benefit programs on the same terms as similarly situated secular schools. This is not as broad as a general Blaine Amendment, which prohibits all aid to faith-based institutions, but is still detrimental to the work of faith-based institutions. Current U.S. Supreme Court precedent has rendered this language ineffective, but it could become effective in the future if Court precedent changes.
Regulatory Freedom:
Nonprofit Religious Corporation Act:
3
/5
Mississippi’s nonprofit corporation law expressly: (a) acknowledges an option for nonprofit corporations to incorporate for religious purposes and (b) includes specific provisions to protect the right of nonprofits incorporated for religious purposes to self-government in internal affairs. The law does not include an option to incorporate expressly as a nonprofit religious corporation.
Standards of Conduct for Directors of Religious Organizations:
3
/5
Mississippi law permits a director, in the fulfillment of the director’s fiduciary duties, to rely on the opinion of individuals who can reasonably be assumed to have expertise on a certain matter, but does not expressly allow a director to rely on guidance from religious figures within his or her faith tradition.
Charitable Registration Law:
0
/5
Mississippi generally requires charitable solicitation registration and only exempts a narrow subset of religious organizations, such as those primarily supported by government grants or contracts, funds solicited from their own membership, congregations or previous donors, and fees charged for services rendered.
Audit Requirements Pursuant to Charitable Registration:
-5
/5
As a condition of maintaining authorization to fundraise in the state, Mississippi requires the submission of reviewed or audited financials for organizations with annual contributions of $250,000 or more.
Corporate Income Tax:
1
/5
Mississippi imposes a corporate income tax but offers an exemption to organizations with federal 501(c)(3) exempt status upon application.
Sales and Use Tax, Sales:
-3
/5
Mississippi imposes a sales and use tax on religious organizations’ sales and only provides limited exemptions.
Sales and Use Tax, Purchases:
-3
/5
Mississippi imposes a sales and use tax on religious organizations’ purchases and only provides limited exemptions.
Property Tax:
1
/5
Mississippi imposes property tax and provides only fragmented property tax exemptions that include only a narrow subset of religious organizations or that apply only to a narrow category of religious and/or charitable property uses.
